In reality, the price of money is not determined by supply and demand. Right, because the supply is elastic without any direct cost of manufacture. The idea th

In reality, the price of money is not determined by supply and demand. Right, because the supply is elastic without any direct cost of manufacture. The idea that interest rates will go down when a lot of people start saving is based on the implicit assumption that the supply is more or less fixed. But that hasn't been true for a long, long time. As long as banks can print money (ie, lend more money than they have actual deposits), the saving rate will not significantly affect interest rates, even leaving the Fed out of the equation. (See, e.g., https://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp https://www.investopedia.com/articles/investing/022416/why-b...)